Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Profit Center Responsibility Reporting xSport Sporting Geuds Co. operates two divisions-the Winter Sports Division and the Summer Sports Division. The following income and expense accounts

image text in transcribed
image text in transcribed
image text in transcribed
Profit Center Responsibility Reporting xSport Sporting Geuds Co. operates two divisions-the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial bria nce es of December 31, 20Y9, the end of the fiscal year, afte all adjustments, including those for inventories, were recorded and posted: Sales-Winter Spcrts Division Sales-Summer Sports Division Cost of Goods Sold-Winter Sports Division Cost of Goods Sold-Summer Sports Divisior Sales Expense-Winter Sports Division Sales Expense-Summer Sports Division Administrative Expense-Winter Sports Division Administrative Expense-Summer Sports Division Advertising Expense Transportation Expense Accounts Receivable Collection Expense Warehouse Expense The bases to be used in allocating expenses, together with other essential information, are as follows a Advertising expense incurred at headquarters, charged back to divisions on the basis of usage: winter Sports Division, SS 17,000; Summer Sports Division, SS84 000 b. Transportation expense-charged back to divisions at a charge rate of $16 per bill of lading: Winter Sports Division, 15,300 bills of lading: Summer Sports Division, $26,75,000 29,580,000 16,065,000 17,085,000 4,590,000 4.080,000 2,677,500 2,626,500 1,101,000 513,600 277,200 2,550,000 16,800 bills of lading. invoices; Summer Sports Division, 16,600 sales invoices Division, 190,000 square feet. c. Accounts receivable collection expense-incurred at headquarters, charged back to divisions at a charge rate of $9 per invoice: Winter Sports Division, 14,200 sales d. Warehouse expense-charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 150,000 square feet; Summer Sports Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Do not round your interim calculations

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Weygandt Kimmel Kieso

10th Edition

0470646462, 978-0470646465

More Books

Students also viewed these Accounting questions

Question

=+e. User: uses the item or service.11

Answered: 1 week ago